Express
Ethena Labs Founder: USDe Anchored to USDT is Reasonable, Minting and Redemption Functioned Normally During Market Turmoil
Summary: Ethena Labs founder Guy Young posted on X platform, stating that in the oracle's attempt to identify two different scenarios, one being temporary mispricing in the secondary market and the other being permanent devaluation of collateral, the latter has never occurred with USDe, making it less likely for such an event to happen with most ...
Ethena Labs founder Guy Young posted on X platform, stating that in the oracle's attempt to identify two different scenarios, one being temporary mispricing in the secondary market and the other being permanent devaluation of collateral, the latter has never occurred with USDe, making it less likely for such an event to happen with most assets, including USDe. Despite criticism of the DeFi currency market due to USDe being anchored to USDT, it is indeed considered a reasonable practice as it can prevent liquidation due to temporary price imbalances.
Ethena provides on-demand reserve proofs to a few entities, some of which are also oracle providers, including Chaos Labs and Chainlink. During this week's market turmoil, Ethena's minting and redemption functions did not crash, with over $9 billion in on-demand stablecoin collateral available for immediate redemption through major liquidity venues like Curve, Uniswap, and Fluid on-chain, but the actual usage is only a small fraction.
Tags:
Link: Ethena Labs Founder: USDe Anchored to USDT is Reasonable, Minting and Redemption Functioned Normally During Market Turmoil [Copy]
